Starboard Value builds stake in Solstice Advanced Materials

Activist hedge fund Starboard Value has acquired a significant stake in Solstice Advanced Materials, becoming one of the company’s top 10 shareholders. The firm is reportedly pressing management to implement approximately $100 million in cost cuts and to refocus operations on its core business segments.

Starboard aims to see Solstice concentrate on its refrigerants division, which accounts for over 70% of sales, and its nuclear business. The hedge fund views the nuclear unit as a high-growth area driven by rising electricity demand from AI data centers. Solstice is noted for being one of the few entities outside of Russia and China capable of performing initial uranium enrichment, a capability of increasing importance ahead of the 2028 U.S. ban on Russian enriched uranium imports.

The activist intervention follows a period of volatility for Solstice. The company recently abandoned a planned $14.5 billion acquisition of Element Solutions in August due to investor concerns regarding debt and integration risks. Following the cancellation, Solstice announced a $500 million share buyback.